Monday, 24 October 2016
Last updated 1 min ago
Mar 26 2013 | 11:59am ET
Doug Whitman, a former hedge fund manager convicted of insider-trading last year, has agreed to pay $1.8 million to settle Securities and Exchange Commission charges.
Whitman and his firm traded on confidential information about Google Inc. and Polycom Inc. that he received from former Galleon Group trader Roomy Khan, who testified against him. Khan was his neighbor in California.
Whitman earned more than $900,000 on Khan's tips. After his conviction, he was ordered to pay nearly $1.2 million in forfeiture and fines; the forfeiture will be set against the SEC settlement, meaning Whitman owes less than $900,000 more.
In addition to the monetary penalties, Whitman, who was sentenced to two years in prison, agreed to be barred from the securities industry.